Posted on: 16th Nov, 2008 07:35 pm
i live in washington state. what happens to the second mortgage if my house goes in foreclosure or deed in lieu. the second and first though different names are under one parent company.
Hi tonydduarte!
Normally, if there is a second mortgage on the property, the first lender will not go for a foreclosure. If the first lender goes in for a foreclosure, he will include a non-merger clause in the agreement which can prevent the second mortgage holder from taking any legal action. The second mortgage holder can charge off the debt to a collection agency.
Thanks.
Normally, if there is a second mortgage on the property, the first lender will not go for a foreclosure. If the first lender goes in for a foreclosure, he will include a non-merger clause in the agreement which can prevent the second mortgage holder from taking any legal action. The second mortgage holder can charge off the debt to a collection agency.
Thanks.
Hi Tonydduarte,
If you go for a deed in lieu on your first mortgage, chances are that the mortgage company will charge off your second mortgage debt and sell it off to collection agency. The agency will then collect the debt from you.
It's better that you keep paying a certain amount towards the second mortgage. Otherwise, the collection agencies don't stop to harrass debtors and chances are that they may even add extra charges to the balance in case you don't keep paying.
Tell me more about about your situation. Would you be able to pay the second? In case you'd like to check out for more on this issue, take a look at the discussions on:
Jessica.
If you go for a deed in lieu on your first mortgage, chances are that the mortgage company will charge off your second mortgage debt and sell it off to collection agency. The agency will then collect the debt from you.
It's better that you keep paying a certain amount towards the second mortgage. Otherwise, the collection agencies don't stop to harrass debtors and chances are that they may even add extra charges to the balance in case you don't keep paying.
Tell me more about about your situation. Would you be able to pay the second? In case you'd like to check out for more on this issue, take a look at the discussions on:
- How deed in lieu affects 2nd mortgage or junior liens
- Credit Charge-off - what is it and how to remove it?
Jessica.
